The PGA Tour and FedEx have signed a 10-year sponsorship renewal of the FedExCup. The deal, which runs through '27, is the Tour’s most lucrative sponsorship. Financial terms of the renewal were not disclosed, but PGA Tour Commissioner Jay Monahan said that the FedExCup’s current $35M in prize money, including a $10M payout to the winner, will increase but offered no specifics. “As we go forward, we expect the Cup and the payout to increase significantly,” he said. The renewal is double the number of years in length from the previous five-year extension signed by FedEx in '12. Monahan said, “It solidifies your foundation, and when you have -- you know that the largest sponsor on our Tour and largest sponsor in our sport is making that length of a commitment, I think it does a couple of things. One, for your players, it's a validation of what was started 11 years ago, and it gives them a confidence and excitement to know that the Cup is going to continue to grow in stature and importance” (John Lombardo, Staff Writer). FedEx Chief Sales Officer Don Colleran said, "We make decisions about renewals in anything based on facts. We have a decade worth of facts that suggest the FedExCup is a great program. It's great for our employees. ... It's great for our customers" ("Squawk Box," CNBC, 5/9). CNBC's Dominic Chu called FedEx' extension a "huge commitment" to both the PGA Tour and the "game of golf in its entirety." Chu: "They see their brand positioned well. They also see this idea that you can have access to some of the best players out there. It does their brand image a lot" ("Morning Drive," Golf Channel, 5/9).
BENEFICIAL RELATIONSHIP: GOLFCHANNEL.com's Rex Hoggard notes the new agreement “assures continuity of the cup for at least 21 years, which is one of the longest running endorsement partnerships in sports." The "importance of continuity was a cornerstone” of the extension (GOLFCHANNEL.com, 5/9). GOLF DIGEST's Jaime Diaz notes the 10-year sponsorship commitment is one that is “becoming more common on the PGA Tour, with eight current tournaments having extended for 10-plus years.” Monahan said the longer commitments offer the PGA Tour more stability and flexibility and have come about “because the product and the system is working” (GOLFDIGEST.com, 5/9).
BIG MOVE FOR MONAHAN: The FLORIDA TIMES-UNION notes the announcement was also the “first big business deal for Monahan, who took over from Tim Finchem” earlier this year. It also comes at a “crucial time” for the PGA Tour. The “players who were the stars when the FedEx Cup was first launched” in '07 such as Tiger Woods, Vijay Singh and Phil Mickelson are “in decline.” But the “ascension of young players” such as Rory McIlroy, Jordan Spieth, Jason Day, Dustin Johnson and Rickie Fowler are a “strong enough market force as a group to convince FedEx to renew its sponsorship” (JACKSONVILLE.com, 5/9). The AP’s Doug Ferguson notes the extension through ’27 goes “well beyond the tour's television contracts with NBC, CBS and Golf Channel,” which expire in ’21. The Tour signed its latest network deal in ’11 when Woods was thought to be able to recover from leg injuries. This FedEx extension was “announced after Woods had his fourth back surgery and will spend at least the rest of the season recovering.” But FedEx Senior VP/Integrated Marketing & Communications Patrick Fitzgerald said that “even without Woods, there is no shortage of stars” on Tour (AP, 5/9).
NO CHANGES TO SCHEDULE YET: Monahan said that no decisions have been made regarding any potential schedule changes to the current FedExCup season or its four-event playoffs to avoid competition with the NFL. The FedExCup playoff format historically ends in late September with the Tour Championship. “Right now the schedule that we play is the schedule we're going with for the foreseeable future,” he said. “Whether or not we make any changes, we haven't made any firm decisions. I think FedEx has a great deal of confidence that wherever we end up with our schedule on a long-term basis and wherever, however we create the FedExCup season and the playoffs, all of that will be done in a way that's going to be in the best interest of the Cup and our players. I'm not saying we're making scheduling changes. I am saying that we've got a commitment through this agreement to significantly raise the consequence of the Cup." Fitzgerald said there is some "exciting potential when you look at the schedule and other things, but I don't know what the best answer will be yet." Fitzgerald: "That's why we are so fortunate that we have a close collaborative working relationship with the Tour and they have a very clear view of some potential things that could change and how that would affect things. So I'm confident that if the schedule changes, it will be in the best interest of golf and of the FedExCup” (Lombardo). Monahan said that there has been “no discussion about rotating the Tour Championship out of East Lake in Atlanta,” where it has been played every year since ’04 (AP, 5/9).
WINNER WINNER: The announcement was accompanied by some friendly ribbing on Twitter among some of the world's top golfers, many of them past FedExCup winners. Tiger Woods: "Hard to believe my first #FedExCup was almost 10 years ago now. What do you say, @vijaysinghgolf?" Henrik Stenson: "I mean, someone had to crash this party and bring a #FedExCup back across the pond. Only to have it stolen by @BillyHo_Golf." Billy Horschel: "That’s right @henrikstenson - had to bring that home in honor of all my Gators! Only to be followed by a Longhorn @JordanSpieth." Jordan Spieth: "Darn right, @BillyHo_Golf. The #FedExCup spent one glorious year in the great state of Texas. And then, @McIlroyRory happened." Rory McIlroy: "Don't worry boys, I’ve been keeping a close eye on the #FedExCup. Long way to go @DJohnsonPGA!" ESPN's Jason Sobel reacted to the Twitter stunt, tweeting, "FedEx Cup news on the same day all of the FedEx Cup champions decided to tweet at each other? What a truly fortuitous coincidence."
